When it comes to long leasehold premises in Feltham, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years remaining. Leasehold owners in Feltham with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Feltham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Feltham valuers.
Trailing unsuccessful correspondence with the freeholder of her garden apartment in Feltham, Jordan initiated the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in January 2010. The freeholder’s costs were negotiated to slightly above 550 GBP.
Last year we were contacted by Dr O Girard , who purchased a newly refurbished flat in Feltham in September 2000. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparative properties in Feltham with 100 year plus lease were worth £200,800. The average ground rent payable was £65 collected yearly. The lease termination date was in 2085. Taking into account 60 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus legals.
An example of a Lease Extension decision for a Feltham property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.